If QE money printing falters and a gold rally cycle startsup, DGC would have probably gone to $50 according to the old high it got to when
the old QE money printing cycle seemed over between 2015 and 2017. Trump's
policies ruined that momemtum even though he says he's in favor of gold. $50
because when the savior of the West and really the world, (ie QE) fails, gold's
price is going to rise more. I will leave it at $50 though it would really go a lot higher
under such dire circumstances.
https://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=dgc&insttype=&freq=2&show=&time=12 KL already had a price to performance, cost efficiencies and revenues coming in,
of $95. It was really underpriced at its already high multiple at $63 price at the time
of its buying DGC.
If KL can bring DGC's costs down to $800 a gold oz, plus find deeper down higher
grade gold on DGC's property, plus all the other goods things just mentioned and
nice percentage interest in other gold companies, particularly NVO, then I will just
leave its price increase to $120 next year, if the present new QE was to fail next year.
Really it would go a lot higher than that, (like DGC would) if the present QE money
printing failed.
If someone had 1000 shares of DGC and gets roughly 434 shares for it as KL and
KL goes to $120, then that is 434 shares X $120 = roughly $52000.
If DGC stayed as DGC and went to $50 then that is once again roughly $52000
and the same fantastic return.
Even at getting only .4343 shares for each share of KL you are going to do just
as good.
But
probably easier as just DGC (DGC not being sold), since KL still has to do those
cost efficiencies of DGC and finding deeper down higher grades of gold on DGC's
property. And still remain the wonder management with luck, performance and
revenues, team and company, on what it has already done without a bought DGC
yet.
That I will concede. Since KL might not maintain as good performance and lucky,
as it has been, which has almost been batting 1000 or 100%. How long can that
luck last and management skills (and luck too) last.
Who bats 1000 or 100% all the time. No one, not even close!
So staying as DGC is the easier way to do that $52000. Gulp !!!!! :)
I have had both DGC and KL for a long time. I'm nervous and hesitant too at the
KL takeover.!!!!! How long can KL perform as well, concerning management,
finding great drilling results in the ground and reducing costs so well.
The streak has to end sometimes, Ugh !!!!! Could DGC be it's achilles heal
and when the streak ends??????
I guess we are going to find out??????